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San Diego, CA: Real Estate Market & Trends 2016

Published on Wednesday - August 24, 2016

Nestled along the west coast, the San Diego real estate market remains one of the hottest in the country. The median home price for San Diego real estate during the first quarter of 2016 was almost double the national average, resting at $554,300 compared to $215,767 — and still growing. As one of the most expensive markets in the nation, San Diego real estate continues to appreciate at unprecedented levels, including outpacing the national average. That said, the San Diego real estate market is set to have an extraordinary year in 2016.

San Diego, CA Real Estate Market Statistics:

San Diego real estate investments

The San Diego real estate market continues to be an optimal area for short and long-term investments. In addition to surging home prices, San Diego real estate continues to appreciate as record speed as total equity gains not only outpace the national average but even double–and sometimes even triple–it. That said, total equity gains for the San Diego real estate market are some of the highest in the nation and should continue for the near future. For those considering San Diego real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the San Diego, CA housing market one year ago have appreciated, on average, by $52,565. The national average was $15,781 over the same period.
  • Homes purchased in the San Diego, CA housing market three years ago have appreciated, on average, by $164,316. The national average was $49,356 over the same period.
  • Homes purchased in the San Diego, CA housing market five years ago have appreciated, on average, by $208,199. The national average was $68,727 over the same period.
  • Homes purchased in the San Diego, CA housing market seven years ago have appreciated, on average, by $259,927. The national average was $59,758 over the same period.
  • Homes purchased in the San Diego, CA housing market nine years ago have appreciated, on average, by $34,649. The national average was $16,435 over the same period.

While price appreciation and principle payments in the last three years have boosted total equity growth since the recession, home equity gains for the San Diego real estate market are some of the most appealing in the country. That said, San Diego real estate investors and homeowners saw one-year equity gains of $52,565 while the national average saw gains of $15,781. In terms of the biggest gains, year seven saw San Diego real estate appreciate almost $200,000 more than the national average, which is great news for investors and homeowners.

As of July 2016, there are currently 1,923 properties in the New York area in some stage of foreclosure. According to RealtyTrac, the number of San Diego foreclosures in the month of July was seven percent lower than the previous month and 29 percent lower than the same period in 2015. Additionally, the number of REO properties in San Diego fell 4.3 percent from the previous month and 35.0 percent from the same time last year. This bodes well for those considering San Diego real estate investing.

San Diego, CA: Real Estate Market Summary:

San Diego housing market

  • Current Median Home Price: $467,900
  • 1-Year Appreciation Rate: 0.3%
  • 3-Year Appreciation Rate: 8.1%
  • Unemployment Rate: 4.5%
  • 1-Year Job Growth Rate: 5.3%
  • Population: 1,370,000
  • Median Household Income: $63,400

San Diego, CA: Real Estate Market (2016) — Q1 Updates:

San Diego real estate investing

The San Diego real estate market is running on all cylinders in 2016. In addition to skyrocketing home prices and appreciation rates, San Diego is enjoying a healthy economy as it continues to improve. The current unemployment rate in San Diego is 4.7 percent, compared with the national average of 5.0 percent — and 0.7 percent lower than one year ago. That said, the one-year job growth rate in San Diego is 2.8 percent, 0.8 percent higher than the national average. According to the National Association of Realtors (NAR), that trend should continue in the second-half of 2016.

One aspect that continues to hinder the San Diego housing market is home affordability. Homeowners paid approximately 22.0 percent of their income to monthly mortgage payments, while the national average paid 14.5 percent. Despite improving its historical average of 26.1 percent, home affordability in San Diego continues to be something investors, homeowners and renters should consider.

Another important component for the San Diego real estate market is new housing construction. The current level of construction for San Diego real estate is 19.8 percent above the long-term average, which is relative to last year, and the rate of single-family housing permits during Q1 was 8.0 percent, compared to the national average of 11.3 percent. Whether a San Diego real estate investor or homeowner, the increase in housing should be considered a positive.

Moving forward, the San Diego real estate market is expected to see continued growth in the second-half of 2016. The National Association of Realtors forecasts higher price growth in California than in the U.S. in the next 12 months, with price expectations for California real estate currently at 4.2 percent, compared to the national average of 3.8 percent. That said, the San Diego real estate market is as good as it gets in terms of investing.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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